Contractor Plant and Machinery Insurance
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This document provides an overview of contractor plant and machinery insurance. It discusses that the insurance provides comprehensive all-risk coverage for unforeseen physical damage to insured machinery while at work, at rest, during dismantling or shifting on site. It also summarizes various coverage's such as external accidents, collision, overturning, fire, theft and burglary. Additional optional covers like third party liability, debris removal and escalation are also mentioned. Exclusions like wear and tear, consequential loss, and nuclear perils are provided. Underwriting considerations like machine details, location, loss history and registration are highlighted. Risk grouping and premium discounts for higher excess amounts are summarized as well.
Contractor Plant and Machinery Insurance
- 1. Contractor Plant & Machinery Insurance Dr. Sarbesh Mishra
- 3. Contractor Plant & machinery Insurance 1. 2. 3. 4. Comprehensive All Risk policy. Covers unforeseen physical damage to machinery insured. At Work. At Rest. While dismantled and re-erected. Shifting within the project site. Confidential Slide
- 4. Coverage’s External Accidents. Collision. Overturning. Fire. Theft. Burglary. ** All risk policy guided by exclusions as per CPM tariff. Confidential Slide 4
- 5. Clips : High voltage power line contacted the excavator boom Overturned dumper Confidential Volvo's collided with the Boundary Wall resulting in External Damage FIRE IN CPM MACHINERY Slide 5
- 6. Additional Covers Third Party Liability – Max 10% of the total SI Owners Surrounding Property. Debris Removal. Additional Custom Duty. Express Freight. Air Freight. Earthquake. Terrorism. Dismantling cover. Escalation. Confidential Slide 6
- 7. Type of covers Single Location Policy. Floater Policy at specified locations. Floater on All India Basis. Confidential Slide 7
- 8. Basis of Valuation Sum Insured selected shall be on the current replacement value of the machine including freight, custom duties and cost of erection of the machinery. Confidential Slide 8
- 9. Mid Term Changes Machines can be added or deleted during the currency of the policy by charging short period rates. Policy Period Required % of Annual Premium Not exceeding 1 week 10 % of Annual Premium Not exceeding 1 month 25 % of Annual Premium Not exceeding 2 months 35 % of Annual Premium Not exceeding 3 months 50 % of Annual Premium Not exceeding 4 months 60 % of Annual Premium Not exceeding 6 months 75 % of Annual Premium Not exceeding 8 months 85 % of Annual Premium Exceeding 8 months Confidential Full Annual Premium Slide 9
- 10. Exclusion Excess amount specified. Electrical and mechanical breakdown. Loss to the exchangeable and replaceable parts. Vehicles licensed for road use. Loss due to total immersion/ partial immersion in tidal water. Transit loss. Public liability while the plant and machinery are on public roads Wear and tear. Consequential loss. Confidential Slide 10
- 11. Contd.. Nuclear and radioactive reaction and war and war like perils. Existing fault and defects. Willful negligence. Loss or damage during routine servicing. Confidential Slide 11
- 12. Duties of the Insured Take reasonable steps to maintain the insured property in efficient working condition. Inform Insurance company for any material change to risk. Addition or deletion of equipments. Change in the insured interest. Duties of the Insured after a loss: 1. 2. 3. 4. Immediately inform the insurer. Take reasonable steps to minimize the loss. Furnish all documents as the company may require. FIR as per merit of the case. Confidential Slide 12
- 13. Underwriting Considerations 1. 2. 3. 4. Details of the machinery to be insured Type of machine.. Age of the machine. Make, model and identification details. Sum Insured. Location site of the machine/ floater cover. Add on covers required. Loss history. Whether machinery is registered under MV act. Break in cases. Confidential Slide 13
- 14. GROUP I Chain Blocks and Pulley Blocks Compressor, Air tools Conveyor belts, site hoists, jacks, screws Cranes upto 10 tonnes capacity (except Turner and Derrick cranes) Concrete pumping plant Cement silos, water containers, Surveying Equipment Electrical/Electronic Equipment used for Non-destructive testing Fork Lift Trucks (upto 10 Tonnes Capacity) Mixing Machines Confidential Slide
- 15. GROUP II Confidential Locomotives, field and steam generating engines track-shifting machines. Mobile mixing plant Mechanical sweepers Site power-generating plant (gasoline or diesel engines) Stone crushers, screens, separating plant. Tractors/Trailers Seismic Data Collection Equipment Slide
- 16. GROUP III & IV III Bulldozers Cranes above 10 tonnes capacity, Turner cranes and Derrick Cranes Diving equipments Excavators (Caterpillar shovels, drag-shovels, power shovels, self-propelled excavators, truck-shovels, bucket excavators, Bucket trenches) Loaders Pile driving and pile extracting IV Drilling Machine for Water Supply Tunnel Boring Machines Confidential Slide
- 17. DISCOUNT FOR HIGHER EXCESS AMOUNTS Excess Increased to 2 times the minimum Excess 5 times the minimum Excess 10 times the minimum Excess 20 times the minimum Excess Confidential Discount (%) 5% 10 % 20 % 30% Slide
- 18. Declined Risks Waterborne machineries. Oil gas drilling, rigs. Policies on first loss basis. Tunneling Boring machines. All types of underground and mining risks. Confidential Slide 18
- 19. Thank you